Indian Iron ore Pellet
In the beginning of April – Iron ore Pellet manufacturers in Odisha, preferred to hold prices in the range of Rs 7,450-7500/MT (Loaded to wagons at Barbil) for material with Fe% 63, due to advance bookings received.
At Bellary (Karnataka), prices unchanged at Rs 7,400/MT for material with Fe% 62.
Discount of Rs 150/MT was offered to buyers for purchasing 10,000 tons of Pellets at one time
Production of low grade Pellets with Fe% 60 (prices at Rs 6,800/MT ex works), was a compulsion due to limited and inferior quality ore supplied in e-auction.
Week 2 – At Odisha, prices were increased by Rs 100-200/MT on improved demand, higher lumps prices by private miners in Odisha and rise in sponge iron prices.
Rungta mines offers for CLO 5-18 mm lumps with Fe% 63 was at Rs 7,250/MT (Loaded to Wagons, Barbil)
Sponge iron units expected fall in Pellet prices on NMDC's price cut in lumps.
At Karnataka, offers remained firm.
Week 3 – At Odisha, prices stepped up by Rs 100-200/MT more on anticipations of low supply further, due to approaching monsoons when quality is impacted and not due to a better demand.
Also, a major manufacturer is to take a 20 days shut down on annual maintenance reasons.
Though, new prices were accepted, buyers avoided bulk purchases on price gap in lumps and Pellets.
In Karnataka, high grade (Fe% 62) Pellet prices were constant.
Low grade material with Fe% 59-60 was cheaper by Rs 200/MT on weak buying interest from 30% of sponge iron units running at 50% capacity.
Hence, Pellet plants were utilizing 70% of total capacity.
Week 4 – Prices remained firm in eastern and southern region as demand was ok.
Current Ex works Prices (Rs/MT) for Fe% 63 Pellet with M-oM change
Barbil 7700-7850, Up by 200
Jharsuguda 7800, Up by 100
Keonjhar 7400-7650 Up by 200
Raipur 9000 Stable
Tatanagar 7900 Up by 300
Bellary 7,100 (Fe% 62) Stable and 6,600 (Fe% 59) Down by 300
Imported Pellet
Week 1 – Importers of Iron ore Pellet (Fe% 65) located in Gandhidham (Gujarat), which imports about one lac tons of Pellet per month, received offers, unchanged at $170-172/CFR India.
Imported Pellet was preferred on factors such as:
- Low phosphorus content (0.2%)
- Low silicon content (2.5%)
- High Fe content (64%)
- Freight cost of carrying Pellet from Karnataka is Rs 2,200, landed costs stands at around Rs 9,550/MT and above
- Pellets offered from Karnataka are of low grade i.e. with Fe% 58-60, which is not very suitable for use
- From Odisha, it is not feasible to get the material through trucks. And through railways, we have to take risks as there are chances of the material being carried away.
Week 3 – Offers dropped by $5/MT to $170-172/MT CFR India from Gulf region, on falling spot iron ore prices in China.
Buying interest was low and importers preferred Pellets from KIOCL on the below stated reasons:
Imported Pellet v/s KIOCL Pellet
- Grade Fe% 65 Fe% 63
- Price (basic) 7,600 9,000
- Landed cost 8,800 10,000
- Silica,alumina5% 7%
- Phosphorus 0.04% Higher
Importers were also disinterested to procure expensive and low grade lumps, available in limited quantities in domestic market.
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